2.0

credits

Average Course Rating

Project financing, as an alternative to conventional direct financing, is a well-established technique for large capital intensive projects. It grew in importance in the 1990s as a means of financing projects designed to help meet the tremendous infrastructure needs existing in both developed and developing countries. Whether project financing is suitable for such a purpose will depend, ultimately, on if this financing method offers the most cost-effective means of accomplishing the project after all social and private benefits and costs are considered. This course will discuss the basic project financing framework; the rationale for using project financing as opposed to direct conventional financing; the identification and management of risks associated with a large scale project; evaluating a project’s viability using analytical tools; sources of project funds; using public-private partnerships as a mode of project financing; and the crafting of contractual arrangements to allocate a project’s risk and economic rewards among the parties involved.